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“ Clean
tech ” may be on its way out as a cool investment opportunity.
But startups in the sustainable technology sector offer the next
wave of discoveries with potential for big returns.

There’s no question that the recession caused investors to pause
and take a hard look at startups they want to support. There’s
been a distinct, more favorable shift toward capital-efficient
startups, or ones that show progress on very little cash.

Unfortunately for startups in the clean-tech space, that has
meant smaller investments. According to the Cleantech Group,
global VC investments in green technologies dipped to $1.07
billion in the first quarter of 2013, a drop from $2.14 billion
during the same period in 2012.

But hope is not lost for those in clean tech. If you are an
entrepreneur who wants to develop technologies that can change
our world and lives – particularly in areas of sustainability and
ecology – you need to be able to prove to investors that you will
maximize returns.

For sustainability startups like mine that entered the market
post-recession the investor scorecard rules have changed. For
example, it’s no longer important to have company advisors that
have name recognition. What’s more important is that the advisors
offer domain expertise that can help scale the business, and that
they are willing to help work through tough challenges –
particularly if the goal is to disrupt.

It's also important that startups realize the purpose of pursuing
a patent. A startup generally isn’t positioned to defend a patent
and often lacks the ability to seek international protection by
filing in every potential country it might operate in at some
future date. The real purpose for a startup to hold a patent is
to send a clear message to investors that an idea is valid and
defendable. This helps to establish a basis of valuation for the
company.

Realizing what the investor community now wants is key in getting
the funding you need. For clean tech startups, now's the time to
take the leap.